Originally published 8 June 2023. Employment Equity requirements have continued to develop since publication; obtain current specialist advice before acting on this article.
The Employment Equity Act and the Broad-Based Black Economic Empowerment Act are separate pieces of legislation. They share the objective of transformation, but their requirements are different.
During a B-BBEE verification, a rating agent may assess Employment Equity submissions. Changes to Employment Equity law should therefore not be ignored, but they do not automatically amend the B-BBEE Codes.
Why alignment matters
Employment Equity obligations and B-BBEE Management Control targets can influence workforce planning in different ways. Businesses should avoid treating either framework in isolation.
A practical approach is to compare the applicable Employment Equity requirements with the demographic targets relevant to the B-BBEE Management Control element, identify inconsistencies early and develop a coordinated strategy.
CMS makes use of approved third-party Employment Equity specialists who understand the impact of Employment Equity on B-BBEE. This helps ensure that the two strategies remain properly aligned.
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